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Merrill
Lynch Portfolio & Algorithmic Trading |
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Crossing Strategies | Liquidity | Premium
Algorithms | Standard Algorithms |
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Merrill Lynch provides fully
anonymous and service oriented
portfolio and algorithmic trading
offering:
Unique Forms of Liquidity
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Largest non-exchange liquidity pool
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Consistently largest broker market share
on NYSE(1)
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Benefit from low alpha crossing
opportunities
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Crossing methodology built with
anti-gaming logic to protect against
adverse selection
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More Information |
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NWT Financial at a glance |
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[PDF / 5 pages / 245 KB] |
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ML Portfolio / Algorithmic Trading |
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[PDF / 5 pages / 245 KB] |
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Algorithms designed to be fully modular/flexible
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Sophisticated yet streamlined algos
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Volume and volatility forecasting reduce slippage
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Represent orders in multiple pools of un-displayed
liquidity while trading in continuous market
without signaling the market.
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Merrill
Lynch crossing strategies provide access to
Merrill's unique liquidity pool as well as resident,
hidden and reserve orders on public exchanges and
ECNs. |
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BlockSeeker
- Aggregator of visible and
hidden liquidity |
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As
fills occur, BlockSeeker dynamically reallocates
leaves quantity amongst user-defined displayed
and non-displayed liquidity pools |
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Option
to trade in the visible market or allocate 100%
to crossing networks |
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User
controls include stealth factor, min/max cross
quantity as well as display size and optional
price instructions |
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Anti-gaming logic |
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Scan
+ Route
- Automated
sweep of internal and external undisplayed liquidity
pools before trading. |
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Sends
order to IOC all major crossing venues in tandem
or sequentially prior to trading. |
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Can be
configured to trade residual or have IOC leaves
cancelled back. |
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Potential price improvement before exposing the
order to the market. |
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User
controls include minimum cross quantity, display
size, choice of destinations or limit prices. |
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Powerful
and flexible algorithmic engine. |
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Low alpha
crossing opportunities minimize adverse
selection |
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Unique access
to natural "upstairs liquidity" in
specialist-traded names |
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Anti-gaming logic
protects the order from being detected by
the market |
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Parent and
child-level order crossing |
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Agency capacity
priority |
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MLXN is a
registered ATS |
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Premium
Algorithms Merrill Lynch’s powerful
algorithmic engine is designed to be as
flexible as possible. Extensive market
microstructure research and robust intraday data
keep the algorithms current in a changing
marketplace. |
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FLEXIBILITY
– Modular algos conform to the trader’s goals and
benchmark risk tolerance. The trader can also
express views on alpha horizon, momentum vs
mean-reversion and/or stock performance in absolute
or relative terms. |
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Description |
Balances price impact against delay cost to
minimize implementation shortfall. OPL can be
used to express a mean-reverting, momentum or
neutral view. Trader defined aggression level
determines participation rate, average slice
size and duration. |
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Use When |
Trying
to execute vs an intraday strike price. |
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Appropriate for |
All
capitalizations, particularly useful if the
trader wants to express a view on momentum or
mean-reversion. |
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For more information regarding NWT's high touch execution
services, please contact us +1 425 295 0400 or via
email at
institutions@nwtfinancialgroup.com.
*Text and images provided by Merrill Lynch. |
NWT Financial Technologies
NWT Financial Market Technologies > Merrill
Lynch Algorithms 